Steps to open a Company in Italy – What Foreign Investors Should Know

Italy remains one of Europe’s most attractive destinations for foreign investors, offering access to the EU single market, a large consumer base, and globally recognised industries such as fashion, food, automotive manufacturing, and design. With its strategic location at the heart of Europe and the Mediterranean, Italy serves as a powerful gateway for businesses looking to expand across the EU and beyond. However, to successfully open a company in Italy, foreign investors must understand local legal requirements, choose the right business structure, and comply with Italian tax and corporate regulations.  

Italy’s framework is well established, but it requires careful planning and professional guidance to navigate efficiently. This guide explains the step-by-step process of opening a company in Italy, highlights incentives for foreign investors, outlines common challenges, and shows how expert support can simplify the entire journey. 

Why Foreign Investors Choose Italy? 

Italy offers a compelling mix of market access, talent, and sector diversity that continues to attract international businesses. 

• Strategic EU Location 

Italy’s EU membership provides unrestricted access to the European single market, allowing businesses to trade freely across 27 countries. 

• Skilled Workforce & Innovation Hubs 

Italy combines a highly skilled workforce with growing innovation ecosystems in cities such as Milan, Turin, Bologna, and Rome. 

• Access to Key Industries 

Foreign investors benefit from Italy’s global leadership in

• Fashion and luxury goods 
• Food and agri-business 
• Automotive and engineering 
• Design and creative industries 

• Incentives for Foreign Businesses 

Italy offers tax credits, R&D incentives, and regional support schemes, especially for innovation and investment in southern regions. 

Step 1 – Decide on the Business Structure 

Choosing the correct legal structure is one of the most important decisions when planning to open a company in Italy. 

Common Structures for Foreign Investors 

• SRL (Società a Responsabilità Limitata) – Limited Liability Company 
• SPA (Società per Azioni) – Joint-Stock Company 
• Branch Office – Extension of a foreign company 
• Representative Office – Non-trading presence 

Comparison of Italian Business Structures 

 For most foreign entrepreneurs, the SRL is the preferred structure due to flexibility, limited liability, and moderate capital requirements. 

Step 2 – Draft the Articles of Association 

In Italy, company incorporation requires a notarial deed, making this step mandatory for all new companies. 

What the Articles of Association Include 

• Company name and registered office 
• Business activities and objectives 
• Share capital and ownership structure 
• Shareholder and director details 

Role of the Italian Notary 

An Italian notary

• Verifies documents and identities 
• Formalises incorporation 
• Registers the company with the authorities 

Foreign documents often require certified translations and apostilles. 

Step 3 – Deposit the Share Capital 

This step confirms the shareholders’ financial commitment and is a legal requirement before the company can be officially registered. Before registration, share capital must be deposited into an Italian bank account. 

Minimum Capital Requirements 

• SRL-  €10,000 (at least 25% paid initially) 
• SPA-  €50,000 

The bank issues a deposit certificate, which is required for registration. 

Step 4 – Register with the Italian Business Register 

This step formally establishes the company as a legal entity recognised under Italian law. Once documents and capital are ready, the company must be registered with the Registro delle Imprese. 

Registration Process 

• Submit notarised Articles of Association 
• Provide proof of capital deposit 
• Register with the local Chamber of Commerce 

Upon approval, the company receives its certificate of incorporation and becomes legally operational. 

Step 5 – Obtain Tax Codes and VAT Number 

This step ensures that the company and its key stakeholders are appropriately registered with the Italian tax authorities before commencing business activities. Tax registration is essential for legally operating and trading. 

Key Tax Identifiers 

• Codice Fiscale –  Required for shareholders and directors 
• VAT Number-  Mandatory for trading companies 

Compliance with Italian tax regulations is crucial, as penalties for non-compliance can be significant. 

Step 6 – Register for Social Security & Employment Obligations 

This step ensures that the company complies with Italian employment and social security regulations before hiring staff. Companies employing staff in Italy must register with the relevant authorities. 

Required Registrations 

• INPS – National Social Security Institute 
• INAIL – Workplace accident insurance 

Italian labour laws are comprehensive, covering contracts, employee rights, and social contributions. 

Step 7 – Understand Accounting and Compliance Requirements 

Proper accounting and compliance processes ensure long-term legal and financial stability for your Italian business. Ongoing compliance is a core obligation when you open a company in Italy.  

Key Requirements 

• Annual financial statements 
• Statutory bookkeeping 
• Corporate tax filings 

Audits 

Mandatory for companies exceeding certain thresholds related to turnover, assets, or employees. Professional local accounting support is strongly recommended. 

Incentives and Support for Foreign Investors in Italy 

Italy offers multiple incentives to attract international investment. 

Available Support 

• Government grants and EU funding 
• R&D and innovation tax credits 
• Investment incentives for southern Italy 
• Industry-specific subsidies 

These programs are particularly attractive to technology, manufacturing, and sustainable businesses. 

Common Challenges for Foreign Investors in Italy 

Understanding potential obstacles in advance allows foreign investors to plan effectively and avoid unnecessary delays during company setup and operations. Despite its opportunities, Italy presents challenges that must be managed carefully. 

Key Challenges 

• Bureaucracy and administrative complexity 
• Language barriers 
• Regional tax and regulatory differences 

Why Professional Guidance Matters?

Expert local support helps foreign investors avoid delays, compliance risks, and costly mistakes. 

How OAEC Can Help? 

Navigating Italy’s legal, tax, and administrative landscape can be complex for foreign investors, but expert guidance makes the process significantly smoother and faster. OAEC provides comprehensive, end-to-end assistance for foreign entrepreneurs looking to open a company in Italy. 

OAEC Services Include 

• Company formation and structure selection 
• Documentation, translations, and notarial coordination 
• VAT, tax, and compliance management 
• Post-setup services: accounting, HR, payroll 
• Registered office and business address solutions 
• Multi-jurisdictional expansion support across Europe 

OAEC simplifies the entire process, allowing investors to focus on growth rather than administration. 

Conclusion 

Italy offers outstanding opportunities for foreign investors, combining EU market access, sector diversity, and strong consumer demand. However, successfully navigating the legal, tax, and compliance landscape requires careful planning and local expertise. By understanding the correct steps and working with experienced professionals, foreign entrepreneurs can confidently open a company in Italy and build a compliant, scalable business in one of Europe’s most dynamic economies. With the proper preparation and support, Italy can become a robust foundation for long-term European growth.  

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